Treasury Admits GDP Used Inappropriately
A senior Treasury official has admitted that his department has been guilty of overusing gross domestic product (GDP), after recognizing that it is a flawed measure of economic well-being and social progress.
The Treasury’s macroeconomics director Dr David Gruen told an audience at the NatStats conference in Sydney today that the body uses gross domestic product to measure economic wealth despite knowing its limitations.
“Economists and statisticians have long known that GDP is not and was never intended to be a measure of well-being or progress. While we have long known its limitations, we as a discipline, have not done enough to discourage its use in inappropriate places,” Dr Gruen admitted.